Deltic expects Valaris unit at Selene

Deltic Energy plc said that the Valaris 123 drilling unit is on its way to the joint venture Selene well location in the southern North Sea.

DRILLING

Operator Shell UK Ltd expects to start the first drilling of 2024 shortly after, with planned operations lasting approximately 90 days.

The well will collect key information on reservoir quality and gas composition for a field development plan and final investment decision on the gas field’s development without the need for a further appraisal well.

Deltic added that the partners would not perform a full well test and will plug and abandon the well on completion.

The company estimates the Selene structure contains gross P50 prospective resources of 318 bcf in the Leman Sandstone reservoir, the key reservoir interval in all adjacent gas fields including Barque, Clipper and West Sole.

Deltic is fully carried for its 25% working interest in the Selene well up to a gross success case well cost of US$49 million, following farm-outs to Shell in 2019 and Dana Petroleum (E&P) Ltd earlier this year.

“This will be the first exploration well spudded on the UKCS in 2024 and is an equally important milestone for Deltic,” said chief executive Graham Swindells.

“The Selene prospect is a high impact infrastructure-led exploration opportunity which demonstrates the strength and depth of the portfolio that we have built over the last few years, and which we estimate to be worth multiples of the company’s current market value.

“Despite ongoing political uncertainty, we look forward to commencing operations and continue to believe exploration on the UKCS has a hugely important role to play in supporting the provision of energy security, vital jobs within the energy sector and offsetting higher carbon intensity imported energy.”